Nifty 50 is India’s most tracked benchmark index, representing the largest and most traded stocks across the market. As of November 2025, the Nifty trades near 25,634.35, up 102% in the last five years. The index captures trends from 13 sectors, moving in response to investor sentiment and economic shifts.
India Outlook Upgraded
Goldman Sachs, a well-known brokerage globally, upgraded India to “overweight,” citing improved growth outlook, policy stability, and resilient corporate earnings. The brokerage set a Nifty 50 target of 29,000 by December 2026, signaling a 14% upside. The upgrade reflects confidence in India’s long-term fundamentals and its growing appeal amid global economic uncertainties and shifting investor sentiment.
The brokrage sees strong potential in financials, consumer staples, defence, and oil marketing companies, driven by domestic demand and policy support. However, it cautions that earnings shortfalls, global uncertainties, and investor apprehensions about AI’s market impact could pose near-term risks to India’s growth and equity performance.
Brokerage Rational
India’s equity markets have lagged global peers, rising just 3% in USD terms versus a 30% surge in emerging markets. Goldman Sachs attributed this rare underperformance the steepest in two decades to elevated valuations, cyclical growth pressures, and slowing profit momentum, though the long-term structural growth outlook for India remains intact.
Goldman Sachs’ Sunil Koul noted that earlier in the year, earnings downgrades and tariff-related challenges weakened investor sentiment, prompting significant foreign outflows. However, with these risks now largely priced in, the brokerage expects Indian equities to outperform in the coming year, supported by improving fundamentals and renewed foreign investor confidence.
Goldman Sachs expects India’s growth to strengthen, supported by RBI’s easing measures, GST cuts, and gradual fiscal consolidation. The brokerage noted that India’s prolonged EPS downgrade cycle has now stabilized, with recent quarterly results surpassing modest expectations, prompting selective earnings upgrades and signaling improving corporate performance and economic recovery momentum ahead.
MSCI India’s profit recovery from 10% to 14% next year reflects a strengthening growth outlook. Despite heavy $30 billion foreign outflows over the past year, improving earnings and easing global trade tensions are reviving investor confidence. The rebound in foreign risk appetite signals renewed optimism for India’s equity market momentum ahead.
Despite Indian markets trading at a high 23x P/E ratio, Goldman Sachs believes valuation risks are limited. The brokerage notes that India’s premium over other Asian markets has eased to 45% from earlier peaks of 85–90%, indicating more balanced valuations and supporting its optimistic market outlook.
Written by Abhishek Singh
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